Deferred Severance Pay

[benpat3]

Have a situation where the employees will retire and the employer will pay them a severance pay that consists of a % of their unused accumulated sick leave. The employees have the option to take a lump-sum payment now or to defer the severance pay until the next year. There are a couple of other requirements, but assuming that the employee(s) satisfy those, and the employee(s) defers until the next year, must the amount of the severance pay be included in the employee's current year taxable income? I could easily be wrong, but I do not see this as a severance pay plan, as this severance pay is tied directly to the employee having accumulated sick leave and meeting a few other requirements.

Also, are there any possible consequences to the employer if they do pay the severance pay in the next year?

Thanks